UK Christmas saving club Park Group has said it will ring-fence savers' money to try and reassure its customers following the recent collapse of its rival Farepak.
The company said that it has created three subsidiaries that operate outside its banking guarantee structure to ring-fence customer payments totaling GBP210 million.
Park Group said that the move is in reaction to Farepak’s collapse, which saw its customer’s lose millions of pounds, and is also due to possible regulation changes in the Christmas savings industry.
Farepak’s collapse means that Park Group is now the UK’s biggest Christmas savings club, and has recorded Christmas order sales of GBP210 million, an increase of GBP43 million on 2005.